DROPBOX INC-CLASS A (DBX) Stock Fundamental Analysis
USA - NASDAQ:DBX - US26210C1045 - Common Stock
29.105 USD
+0.73 (+2.55%)
29.1 USD
0 (-0.02%)
We assign a fundamental rating of 5 out of 10 to DBX. DBX was compared to 283 industry peers in the Software industry. While DBX belongs to the best of the industry regarding profitability, there are concerns on its financial health. DBX may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
DBX had positive earnings in the past year.
DBX had a positive operating cash flow in the past year.
DBX had positive earnings in 4 of the past 5 years.
In the past 5 years DBX always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of DBX (17.46%) is better than 92.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 52.97%, DBX belongs to the top of the industry, outperforming 98.94% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for DBX is significantly above the industry average of 11.88%.
The last Return On Invested Capital (52.97%) for DBX is above the 3 year average (17.97%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.46% | ||
| ROE | N/A | ||
| ROIC | 52.97% |
ROA(3y)15.53%
ROA(5y)9.34%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.97%
ROIC(5y)15.1%
1.3 Margins
DBX has a better Profit Margin (19.16%) than 83.45% of its industry peers.
DBX's Profit Margin has improved in the last couple of years.
The Operating Margin of DBX (22.67%) is better than 88.73% of its industry peers.
In the last couple of years the Operating Margin of DBX has grown nicely.
DBX has a better Gross Margin (81.35%) than 85.21% of its industry peers.
In the last couple of years the Gross Margin of DBX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.67% | ||
| PM (TTM) | 19.16% | ||
| GM | 81.35% |
OM growth 3Y10.3%
OM growth 5YN/A
PM growth 3Y4.48%
PM growth 5YN/A
GM growth 3Y1.29%
GM growth 5Y1.86%
2. Health
2.1 Basic Checks
DBX has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for DBX has been reduced compared to 1 year ago.
Compared to 5 years ago, DBX has less shares outstanding
The debt/assets ratio for DBX is higher compared to a year ago.
2.2 Solvency
DBX has an Altman-Z score of 0.67. This is a bad value and indicates that DBX is not financially healthy and even has some risk of bankruptcy.
DBX's Altman-Z score of 0.67 is on the low side compared to the rest of the industry. DBX is outperformed by 67.25% of its industry peers.
DBX has a debt to FCF ratio of 3.00. This is a good value and a sign of high solvency as DBX would need 3.00 years to pay back of all of its debts.
DBX's Debt to FCF ratio of 3.00 is fine compared to the rest of the industry. DBX outperforms 64.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3 | ||
| Altman-Z | 0.67 |
ROIC/WACC5.17
WACC10.25%
2.3 Liquidity
DBX has a Current Ratio of 0.60. This is a bad value and indicates that DBX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of DBX (0.60) is worse than 88.38% of its industry peers.
A Quick Ratio of 0.60 indicates that DBX may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.60, DBX is doing worse than 88.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.32% over the past year.
Measured over the past years, DBX shows a very strong growth in Earnings Per Share. The EPS has been growing by 38.64% on average per year.
DBX shows a decrease in Revenue. In the last year, the revenue decreased by -0.04%.
The Revenue has been growing by 8.93% on average over the past years. This is quite good.
EPS 1Y (TTM)22.32%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%18.33%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%-1.39%
3.2 Future
The Earnings Per Share is expected to grow by 2.92% on average over the next years.
The Revenue is expected to decrease by -1.17% on average over the next years.
EPS Next Y8.86%
EPS Next 2Y8.23%
EPS Next 3Y4.73%
EPS Next 5Y2.92%
Revenue Next Year-1.83%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.97%
Revenue Next 5Y-1.17%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
DBX is valuated reasonably with a Price/Earnings ratio of 10.62.
89.44% of the companies in the same industry are more expensive than DBX, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of DBX to the average of the S&P500 Index (27.40), we can say DBX is valued rather cheaply.
DBX is valuated reasonably with a Price/Forward Earnings ratio of 9.90.
DBX's Price/Forward Earnings ratio is rather cheap when compared to the industry. DBX is cheaper than 90.85% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of DBX to the average of the S&P500 Index (22.94), we can say DBX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 9.9 |
4.2 Price Multiples
DBX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. DBX is cheaper than 86.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DBX is valued cheaply inside the industry as 95.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.8 | ||
| EV/EBITDA | 12.92 |
4.3 Compensation for Growth
DBX's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of DBX may justify a higher PE ratio.
PEG (NY)1.2
PEG (5Y)0.27
EPS Next 2Y8.23%
EPS Next 3Y4.73%
5. Dividend
5.1 Amount
No dividends for DBX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.105
+0.73 (+2.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners107.64%
Inst Owner Change-0.17%
Ins Owners5.95%
Ins Owner Change-1.46%
Market Cap7.85B
Analysts50.53
Price Target28.32 (-2.7%)
Short Float %9.48%
Short Ratio5.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.38%
Min EPS beat(2)11.32%
Max EPS beat(2)11.44%
EPS beat(4)4
Avg EPS beat(4)12.53%
Min EPS beat(4)11.32%
Max EPS beat(4)15.74%
EPS beat(8)8
Avg EPS beat(8)11.93%
EPS beat(12)12
Avg EPS beat(12)11.35%
EPS beat(16)16
Avg EPS beat(16)9.58%
Revenue beat(2)1
Avg Revenue beat(2)-0.05%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)0.16%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)0.16%
Revenue beat(8)1
Avg Revenue beat(8)-0.33%
Revenue beat(12)3
Avg Revenue beat(12)-0.15%
Revenue beat(16)5
Avg Revenue beat(16)-0.15%
PT rev (1m)-1.02%
PT rev (3m)-1.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.82%
EPS NY rev (1m)0%
EPS NY rev (3m)2.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.55%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.62 | ||
| Fwd PE | 9.9 | ||
| P/S | 3.1 | ||
| P/FCF | 8.8 | ||
| P/OCF | 8.7 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.92 |
EPS(TTM)2.74
EY9.41%
EPS(NY)2.94
Fwd EY10.1%
FCF(TTM)3.31
FCFY11.36%
OCF(TTM)3.34
OCFY11.49%
SpS9.39
BVpS-4.84
TBVpS-6.67
PEG (NY)1.2
PEG (5Y)0.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.46% | ||
| ROE | N/A | ||
| ROCE | 62.12% | ||
| ROIC | 52.97% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 22.67% | ||
| PM (TTM) | 19.16% | ||
| GM | 81.35% | ||
| FCFM | 35.23% |
ROA(3y)15.53%
ROA(5y)9.34%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)17.97%
ROIC(5y)15.1%
ROICexc(3y)69.99%
ROICexc(5y)80.12%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)21.07%
ROCE(5y)17.71%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-15.6%
ROICexc growth 5YN/A
OM growth 3Y10.3%
OM growth 5YN/A
PM growth 3Y4.48%
PM growth 5YN/A
GM growth 3Y1.29%
GM growth 5Y1.86%
F-Score4
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 6.71% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 124.51% | ||
| Profit Quality | 183.81% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.67 |
F-Score4
WACC10.25%
ROIC/WACC5.17
Cap/Depr(3y)17.74%
Cap/Depr(5y)24.54%
Cap/Sales(3y)1.13%
Cap/Sales(5y)1.78%
Profit Quality(3y)165.94%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.32%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%18.33%
EPS Next Y8.86%
EPS Next 2Y8.23%
EPS Next 3Y4.73%
EPS Next 5Y2.92%
Revenue 1Y (TTM)-0.04%
Revenue growth 3Y5.7%
Revenue growth 5Y8.93%
Sales Q2Q%-1.39%
Revenue Next Year-1.83%
Revenue Next 2Y-1.21%
Revenue Next 3Y-0.97%
Revenue Next 5Y-1.17%
EBIT growth 1Y12.3%
EBIT growth 3Y16.58%
EBIT growth 5YN/A
EBIT Next Year24.01%
EBIT Next 3Y6.3%
EBIT Next 5Y8.46%
FCF growth 1Y19.21%
FCF growth 3Y7.53%
FCF growth 5Y17.4%
OCF growth 1Y16.65%
OCF growth 3Y7%
OCF growth 5Y11.09%